AerCap Holdings N.V. AerCap Holdings N.V. Fourth Quarter and Full Year 2006 Fourth Quarter and Full Year 2006 Earnings Call Earnings Call February 28, 2007 February 28, 2007
Forward Looking Statements & Safe Harbor Forward Looking Statements & Safe Harbor This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements”. In some cases, forward-looking statements can be identified by the use of forward- looking terminology such as “may,” “might,” “will," “should,” “expect,” “plan,” “intend,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue” or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this presentation are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements. As a result, there can be no assurance that the forward-looking statements included in this presentation will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this presentation might not occur. Accordingly, you should not rely upon forward- looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. We do not undertake any obligation to, and will not, update any forward-looking statements, whether as a result of new information, future events or otherwise. 2
2006 Highlights 2006 Highlights � Q4 net income was $41.5 million (excluding charge for share based compensation) � FY net income $156.3 million (excluding charge for share based compensation) � FY revenue was $814.4 million (up 65%) � Flight equipment held for lease was $3.0 billion as of December 31, 2006 (up 36%) � Purchases of aviation assets of nearly $1 billion for FY 2006 � IPO completed, proceeds of $156.4 million retained by the Company, and used primarily to pay down indebtedness � Firm order with Airbus of 20 new A330-200 aircraft � Launch of Chinese aircraft leasing joint venture 3
Fourth Quarter Net Income Fourth Quarter Net Income ($ Million) 55% increase 60 over prior year 41.5 40 26.7 20 (58.7) Net Income 0 Excluding Charge for Share-based -20 Compensation Charge for -40 Share-based Compensation, -60 Net of Tax 4Q 2005 4Q 2006* * 4Q 2006 results include AeroTurbine 4
Full Year Net Income Full Year Net Income ($ Million) 200.0 88% increase 156.3 over prior year 150.0 83.4 100.0 Net Income Excluding 50.0 Charge for (68.3) Share-based 0.0 Compensation (50.0) Charge for Share-based (100.0) Compensation, Full Year Full Year Net of Tax 2005* 2006** • 2005 results are 6 months ended June 30, 2005 for AerCap B.V. (predecessor company) plus 6 months ended December 31, 2005 for AerCap N.V. (successor company) ** 2006 results include AeroTurbine from April 26 through December 31, 2006 5
Earnings Per Share Earnings Per Share 2005* 2006** 4Q Full Year* 4Q Full Year EPS Excluding Charge $0.34 $1.07 $0.51 $1.98 for Share-based Compensation Total EPS $0.34 $1.07 ($0.21) $1.11 Average Shares 78.237 78.237 81.259 78.993 Outstanding (Million) * 2005 results are for 6 months ended June 30, 2005 for AerCap B.V. (predecessor company) plus six months ended December 31, 2005 for AerCap N.V. (successor company) ** 2006 results include AeroTurbine from April 26 through December 31, 2006 6
Total Assets and Number of Aircraft/Engines Total Assets and Number of Aircraft/Engines 12/31/05 12/31/06 ($ Million) 28% increase $3,923 over prior year $4,000 $3,061 $3,500 Total Assets $3,000 Owned and on $2,500 Balance Sheet $2,000 $1,500 $1,000 $500 $0 Number of Aircraft - Owned 105 131 - On Order 15 99 - Under Contract/LOI - 11 - Managed 121 103 Total Aircraft 241 344 Number of Engines (Owned or on LOI) 4 57 7
Purchases of Aviation Assets Purchases of Aviation Assets ($ Million) 4Q 2006 Full Year 2006 Aircraft Related $483.6 $884.1 39.2 89.1 Engines/Airframes Total $522.8 $973.2 # of Aircraft Purchased 28 41 8
Portfolio Management Metrics Portfolio Management Metrics Aircraft Lease Portfolio 2005* 2006 Utilization Rate 99% 99% Portfolio Yield** ~15% ~17% Average Term (Months) – New Leases 69 103 – Lease Renewals 51 59 2007 Lease Revenue Already Contracted ~117% – as a % to 2006 Actual Lease Revenue •2005 results are for 6 months ended June 30, 2005 for AerCap B.V. (predecessor company) plus 6 months ended December 31, 2005 for AerCap N.V. (successor company) ** 2006 lease revenue (excluding maintenance) divided by average book value of flight equipment 9
Revenue Breakdown Revenue Breakdown ($ Million) 4Q 2006 Full Year 2006 Lease Revenue $132.8 $443.9 Sales Revenue 64.7 301.4 Management Fees, Interest Income 14.1 69.1 and Other Revenue Total Revenue* $211.6 $814.4 % Increase over 2005** 78% 65% * 2006 results include AeroTurbine from April 26 through December 31, 2006 ** 2005 results are for 6 months ended June 30, 2005 for AerCap B.V. (predecessor company) plus 6 months ended December 31, 2006 for AerCap N.V. (successor company) 10
Sales Revenue Sales Revenue Sales Optimizing Portfolio and Improving Mix, Quality and Diversification 4Q Full Year 2006 2006 4Q (4 aircraft) Aircraft Sales $34.8 $232.3 2 Fokker 100s 2 B757s Engine Sales 14.5 31.4 Full Year (19 aircraft) Part-Out Sales 15.4 37.7 13 Fokker 100s 4 A320s Total 2 B757s $64.7 $301.4 11
Cash / Access to Capital Cash / Access to Capital ($ Million) Cash Balance at 12/31/06 $243 Operating Cash Flow in 2006 $348 Available Lines of Credit at 12/31/06 $1,268 12
Debt/Financings Debt/Financings ($ Million) Total Debt at 12/31/06 $2,555 6.8% Average Cost of Debt in 2006* Debt/Equity Ratio at 12/31/06 3.5 to 1 Financings in 4Q 2006 (Total Amount of Facility) - AeroTurbine Revolving Facility (Amended) $220 - Commercial Debt for Aircraft Purchases from GATX $248 - AerVenture PDP Facility $119 * Interest expense divided by average debt balance 13
Expenses & Productivity Expenses & Productivity ($ Million) 2005* 2006 Expenses** $206.1 $245.7 - 19% % Increase in Expenses (2006 over 2005) % Increase in Assets (2006 over 2005) - 28% % Increase in Revenue (2006 over 2005) - 65% *2005 results are for 6 months ended June 30, 2005 for AerCap B.V. (predecessor company) plus 6 months ended December 31, 2005 for AerCap N.V. (successor company) ** Includes depreciation/amortization, lease expenses, and SG&A expenses excluding charges for share-based compensation 14
Taxes & Tax Rate Taxes & Tax Rate ($ Million) 2006 Income Before Taxes $103.7 Taxes $16.3 Tax Rate 15.7% 15
Adjusted EBITDA Adjusted EBITDA 2005* 2006** Adjusted EBITDA ($ million) *** $325 $452 % Increase over 2005 - 39% * 2005 results are for 6 months ended June 30, 2005 for AerCap B.V. (predecessor company) plus 6 months ended December 31, 2005 for AerCap N.V. (successor company) ** 2006 results include AeroTurbine from April 26 through December 31, 2006 *** Adjusted EBITDA excludes charges for share-based compensation 16
2007 Outlook 2007 Outlook � Cash and available lines of credit allow for purchases in 2007 to be comparable to that achieved in 2006 � 2007 sales revenue as a % to total revenue expected to be higher than 2006 � 2007 cost of debt expected to be comparable to 2006 � 2007 tax rate expected to be lower than 2006 � 2007 ROE expected to be 20-25% 17
2006 Highlights 2006 Highlights � Q4 net income was $41.5 million (excluding charge for share based compensation) � FY net income $156.3 million (excluding charge for share based compensation) � FY revenue was $814.4 million (up 65%) � Flight equipment held for lease was $3.0 billion as of December 31, 2006 (up 36%) � Purchases of aviation assets of nearly $1 billion for FY 2006 � IPO completed, proceeds of $156.4 million retained by the Company, and used primarily to pay down indebtedness � Firm order with Airbus of 20 new A330-200 aircraft � Launch of Chinese aircraft leasing joint venture 18
Notes Regarding Financial Information Presented in This Document 19
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